Italian Banking Sector Faces Complex Consolidation
A significant asset management merger involving Italy’s largest insurer, Assicurazioni Generali SpA, and French bank BPCE SA’s asset management arm, Natixis, has added complexity to an already turbulent year for banking sector consolidation in Italy. The proposed partnership aims to create Europe’s second-largest investment firm, but faces resistance from prominent Generali shareholder Francesco Gaetano Caltagirone and some Italian government members.
Despite these concerns, the deal retains Mediobanca’s backing, Generali’s leading investor. The project, announced in January, is expected to be formalized this summer and completed by early 2026. Once signed, the transaction will be scrutinized by Italian authorities.
Tensions Within Generali’s Shareholder Base
UniCredit has disclosed a nearly 7% stake in Generali, though CEO Andrea Orcel stated this is a “purely financial” holding, with plans to divest gradually. This move has added to the tensions within the insurer’s shareholder base.
Italian Banking M&A Faces Hurdles
Italy’s wave of financial sector mergers and acquisitions is increasingly marred by delays due to regulatory demands and shareholder pushback. Mediobanca’s recent postponement of a key shareholder meeting to September 25 underscores the broader uncertainty in the sector.
The investment bank’s attempted takeover of Banca Generali, launched in April, faced opposition from Caltagirone and was expected to meet resistance from UniCredit, which was likely to abstain from the original June 16 vote.
UniCredit’s Hostile Takeover Faces Government Intervention
UniCredit’s hostile takeover of Banco BPM has been derailed by Italian government conditions, which CEO Orcel has called potentially unlawful. The bank initiated the bid to secure its leadership within Italy’s financial sector, but Rome’s intervention has led to a 30-day suspension of the offer.
Monte Paschi’s Unsolicited Bid for Mediobanca
State-controlled Banca Monte dei Paschi di Siena’s unsolicited bid for Mediobanca, Generali’s top shareholder, has further stirred Italy’s fragmented banking environment. Mediobanca has rebuffed the offer, describing it as lacking strategic rationale and potentially harmful.
Mixed Progress in Deal Landscape
Despite the turbulence, some transactions have moved forward. Banco BPM’s acquisition of asset manager Anima Holding SpA, launched last November, was improved after initial terms and has since closed, making it the only completed deal in the current M&A cycle.
Future Outlook
Analysts predict further disruption due to rival investor groups, political oversight, and cross-ownership structures entangling major deals. The European Central Bank has backed cross-border and domestic consolidation, but the Italian experience highlights the challenges involved when strategic interests, state stakes, and shareholder power plays collide.
